Exchange Rates and International Trade

<p>The dollar got weaker (B)</p> Signup and view all the answers

<p>$49 (D)</p> Signup and view all the answers

<p>0.70 (C)</p> Signup and view all the answers

<p>$588,000 (C)</p> Signup and view all the answers

<p>£411,189 (D)</p> Signup and view all the answers

<p>International investors pulling out their financial capital (B)</p> Signup and view all the answers

<p>Increased supply of pesos in the market (D)</p> Signup and view all the answers

<p>Consumption of goods and services (D)</p> Signup and view all the answers

<p>One country can produce goods more efficiently than another country. (C)</p> Signup and view all the answers

<p>Dislike of competition and its implications. (A)</p> Signup and view all the answers

<p>Absolute advantage (C)</p> Signup and view all the answers

<p>Defense is more important than opulence. (D)</p> Signup and view all the answers

<p>Competition fosters innovation and improvement. (C)</p> Signup and view all the answers

<p>Consume more at a lower price (C)</p> Signup and view all the answers

<p>It can affect the supply of other currencies. (D)</p> Signup and view all the answers

<p>It leads to the emergence of better ideas and products. (D)</p> Signup and view all the answers

<p>More resources can be allocated to other needs. (A)</p> Signup and view all the answers

An increase in the value of the Mexican peso relative to other currencies, meaning more of another currency is needed to buy one peso.

A decrease in the value of the Mexican peso relative to other currencies, meaning less of another currency is needed to buy one peso.

A decrease in the value of the yen relative to the U.S. dollar, requiring fewer dollars to purchase one yen; it takes less of the dollar to purchase a yen.

The rate at which one currency can be exchanged for another.

The ability of an economy to produce a good or service at a lower opportunity cost than other economies.

An increase in the value of a currency in relation to other currencies.

A decrease in the value of a currency in relation to other currencies.

Improvements in a country's production technology typically increase demand for its currency, causing it to strengthen.

Perceptions of political instability can decrease demand for a country's currency, leading to depreciation.

£411,189 is required to purchase 12,000 baseball bats at $49 each, given an exchange rate of $1.43 per £1.

A greater desire for the US Dollar, potentially due to increased trade or investment.

More British Pounds available in the market.

Disliking competition in trade, seen as self-interest, but not necessarily bad.

Competition leads to improved goods, services, and ideas.

Prioritizing a nation's ability to defend itself without outside help.

The ultimate goal of economic activity; achieving better and safer consumption of goods and services.

Costa Rica excels at producing Bananas compared to other countries; a key concept in international trade.

A country uses fewer resources than another to produce the same product.

Consumption with the aim of improving health, education, and wellbeing.